Founded
in 1975 by Rosalia Mera and Amancio Ortega, Zara which is a Galician fast
fashion on clothes and accessories remains one of the most preferred retailers
for fashionable and quality products. Zara is the main brand of the Inditex
group with its headquarters located in Arteixo, Galicia in Spain and is among
the largest apparel retailers in the world (www.zara.com). One surprising
factor about this brand is the fact that its products have remained affordable
and of high quality irrespective of the high degree of innovation and stylish
designs its products portrays. With the amalgamation of all these qualities,
Zara has defied the odds of marketing as it remains one of the sought-after
brands when it comes to latest fashions a fact that makes it dominate other
rival brands. Today, almost 50% of Zara’s products sold worldwide are still
being manufactured in Spain.
One key
factor that is attributed to Zara’s success is its zero policy on
advertisement. In today society where firms spend billions of dollars in order
to advertise their products to attract new customers and also retain the loyal
ones, Zara has however remained opposed to such actions as it always invest
nothing on adverts and uses such savings to extend its production and opening
new stores. Another key factor for its success is its ability to develop a new
product in a short time frame which results in a shorter supply chain system (Christopher,
37). While other rival firms take at least six months to come up with new
products in the market, Zara enjoys a faster product development since it only
takes the firm one week to develop and launch new products in its stores. Zara
has managed to enhance its market dominance due to the fact that it
successfully implements product diversification in which it produces different
clothes designs for men, women, and also children. The management of Zara with
an objective of expanding the firm’s operation beyond Spain, has invested in
extending Zara stores in over 88 countries thus increasing the market niche of
the firm.
Works
Cited
Christopher, Martin. "The agile
supply chain: competing in volatile markets." Industrial marketing
management 29.1 (2000): 37-44.
